This New Launch Means XRP Holders Can Now Earn Yield – Here’s How
XRP simply gained a new category of on-chain utility following the launch of modular lending on the Flare Network. According to a current announcement by the blockchain community, modular lending for XRP has debuted on the community by way of an integration with Morpho and Mystic Finance.
The new update makes it such that FXRP holders can put their XRP publicity to work in curated, yield-bearing vaults and likewise borrow towards that place on-chain, a characteristic referred to as earn yield and borrow with out promoting.
Modular Lending Goes Live And Brings DeFi Utility To XRP
The most vital part of the announcement is Morpho’s deployment on the Flare Network, a transfer that unlocks permissionless lending markets tied to XRP by way of FXRP, Flare’s XRP-pegged asset utilized in its XRPFi stack.
Flare described Morpho as a common lending community with greater than $10 billion in complete deposits throughout EVM chains. Notably, the combination with Morpho is the primary time modular lending has been made obtainable on the Flare community for XRP holders. Mystic Finance plugs into that by working because the entrance finish for Morpho on Flare. This signifies that customers work together by way of Mystic whereas Morpho runs the lending market construction beneath.
The integration of Morpho and Mystic Finance introduces modular lending vaults on the Flare community which can be actively managed and absolutely permissionless. These vaults are designed to provide FXRP holders entry to yield that adjusts with market situations, whereas additionally balancing danger and return by way of automated methods.
How FXRP Holders Earn Yield And Borrow Without Selling
XRP holders have principally been restricted within the DeFi area of interest, however a series of developments over current months has begun to shift that dynamic. The modular lending integration involving Morpho and Mystic Finance, constructed round FXRP on the Flare Network, is now one of the most notable developments.
FXRP is a 1:1 trustless, overcollateralized illustration of XRP on the Flare Network that enables the token for use in DeFi functions and not using a custodian. Now that modular lending is now dwell, FXRP holders can earn yield and borrow with out promoting their holdings.
The earn yield piece comes from depositing FXRP into curated, yield-bearing vaults. Once deposited, the vault’s technique and market situations decide the lending returns. FXRP might be posted as collateral to borrow stablecoins or different property supported in these markets, so holders can entry liquidity whereas preserving publicity to XRP by way of FXRP. From there, customers can combine into structured yield methods by way of Spectra and loop capital throughout staking, lending, and borrowing, all throughout the Flare atmosphere.
This newest rollout is a part of numerous efforts by Flare to extend what XRP holders can do with their property. Modular lending provides one other layer to an ecosystem that already contains FXRP staking by way of Firelight, spot buying and selling by way of Hyperliquid, and yield tokenization by way of Spectra. These instruments and options give XRP holders more ways to earn, borrow, and place capital, whereas the underlying XRP itself stays on the XRP Ledger.
